Spending growth for paid search, paid social
and retail media advertising slowed in the third quarter from the second quarter. Yearly gains were measured against the steep drop in media spending during the onset of the pandemic in 2020.
Price increases helped to drive the rise in spending for paid search (+30%) and paid social (+34%), but was less of a factor for retail media (+21%),
according to a study of digital media spending trends from adtech firm Skai, which was formed after Kenshoo
acquired Signal Analytics. During the third quarter, Google, Facebook and Amazon all reported double-digit gains in ad revenue as volumes surged. Google’s
ad sales rose 43% from a year earlier to $53.1 billion in the third quarter, while Facebook’s
climbed 33% to $28.3 billion and Amazon’s
rose 50% to about $8.09 billion. Apple’s changes to the privacy settings on its
devices, including the iPhone, didn’t have a dramatic effect on social-media prices. Facebook’s cost per thousand (CPM) rate steadied after Apple updated its software in April, according
to Skai. (Media agency Merkle last month published a different comparison —
its report showed a yearly gain in Facebook’s CPMs during the third
quarter.)